Another major U.S. bank is joining the wave of companies launching digital lending platforms.
TD Bank NA will use Avant Inc.'s end-to-end technology platform, called Amount, to power the bank's TD Fit Loan, which launched in August 2018. The initial offering allows customers to consolidate higher-interest debt, applying online or through a mobile device. Select TD Bank customers can apply for unsecured installment loans of up to $35,000. If approved, customers could receive funds as soon as the next day.
TD Bank, a subsidiary of Toronto-based Toronto-Dominion Bank, has about $303 billion in assets. Although it is not the first bank to white-label Avant's platform, TD Bank will be the largest. Avant has also licensed its technology to HSBC Bank USA NA, Regions Financial Corp.'s Regions Bank and Popular Inc., among several others that have not been made public.
Other banks have made similar moves into online lending.
PNC Financial Services Group Inc. announced a partnership with small-business online lender On Deck Capital Inc. in October 2018. PNC Bank NA uses OnDeck's platform-as-a-service, called ODX, to speed up and simplify the traditional lending origination process for a small business. JPMorgan Chase & Co. signed a similar agreement with OnDeck in 2015, marking the first of its kind between a major bank and fintech company.
Wells Fargo & Co. launched FastFlex, which allows small-business clients to take out one-year loans of $10,000 to $35,000, in 2016. Citigroup Inc. launched a small-business lending website to issue loans of up to $1 million in January 2017.
TD Bank has customized Amount's platform to its specifications. It will also provide TD Bank with consultative data analysis to improve risk assessment, underwriting, modeling and customer acquisition.
The companies plan to roll out additional offerings and stand-alone tools that help to address fraud and identity verification. This initial offering marks "the first in a series of collaborative initiatives" with Amount, said Mark Victoria, head of personal lending at the bank.